Saskatchewan Premier Scott Moe has indicated that it is too early to determine whether Alberta's newly signed carbon pricing agreement with the federal government will place Saskatchewan at a competitive disadvantage in attracting industry. The deal, finalized on Friday between Prime Minister Mark Carney and Alberta Premier Danielle Smith, revises Alberta's carbon pricing targets and paves the way for a new oil pipeline to the west coast.
Details of the Agreement
Under the agreement, Alberta commits to taxing heavy emitters at a rate of $115 per tonne by 2030, an increase from the current $95 per tonne. In contrast, the rest of Canada is mandated to reach $170 per tonne by the same year. The deal also establishes a price floor for carbon credits, which could artificially increase their value from the current trading level of around $40 per tonne under Alberta's Technology Innovation and Emissions Reduction system.
Moe's Concerns
Moe stated that Saskatchewan has consistently opposed federal policies that put its industries and families at a competitive disadvantage. He emphasized that the province will carefully review the agreement to assess its implications for competitiveness across Western Canada. Saskatchewan had previously paused its own output-based performance system for industrial emissions in March 2025, a system Moe said was designed around the province's economic realities.
“Saskatchewan has always supported practical emissions reductions that protect jobs and investment at the same time. If there are opportunities to ensure our industries remain competitive while continuing to reduce emissions intensity, of course we’ll engage with the federal government on that,” Moe said in a prepared statement.
Economic Context
Alberta's economy is heavily reliant on the carbon-intensive oil industry, which accounts for 67% of its annual exports. Oil is also Saskatchewan's most significant export, but it represents only 26% of the province's exports. The new pipeline project, expected to have a capacity of one million barrels per day, could potentially receive federal approval for construction by September 2027. For landlocked Saskatchewan, this pipeline could provide crucial access to Asian markets, alleviating current limitations imposed by pipeline capacity.
Moe added that any future decisions by Saskatchewan would aim to balance clarity, competitiveness, and stability for key industries. The agreement gives the province an opportunity to identify potential gains from engaging with the federal government on emissions reduction policies.
